The UK is the top destination for education in the world. Liverpool, one of the top university cities in Britain is especially popular. As more overseas students flock to the UK to further their studies, the demand for commercial purpose built student property increases. Studies show that students have become more discerning of the spaces that they choose to live in; living in cramped HMOs — with no privacy, security, communal spaces or lifestyle amenities — is no longer a popular option.
When one thinks of education in the UK, a series of stars and superlatives must spring to mind, perhaps even images of the neoclassical dome and cupola of Radcliffe Camera in Oxford University! A denouement everyone undoubtedly reaches when it comes to education in the UK is that it is invariably on top of the game (bringing the property market along with it following a high demand in PBSA).
The Times Higher Education World University Rankings 2018 was recently released, revealing that Oxford University took first place with Cambridge University coming in at second place!
Also issued around the same time is the QS World University Rankings 2018, showing a significant number of UK universities in the top 100. The University of Cambridge landed itself in the top 5 rankings, with Oxford occupying the 6th spot. University College London (UCL) and Imperial College London come right after, taking the 7th and 8th spots, respectively. With almost half of the top 10 list belonging to the UK, Britain proves that its education system remains unparalleled.
University Applications in the UK Are Increasing
The success in the UK’s education sector is reflected by the mounting number of university applications. According to The Universities and Colleges Admissions Service (UCAS), the number of applicants from the EU increased by 3.4% to 43,510, a number that is slightly down from 2016’s recent-year high of 45,220 applications but that nevertheless reflects a reversal of the notable dip in admissions volumes registered a year ago. Also worth noting is a 3% rise of EU students applying for places as undergraduates from the same point in 2017, and — the second highest number of EU applicants recorded. Adding to that is the number of international applicants (non-EU students) which increased by 11%, its highest ever number by far.
Additionally, application rates from English 18-year-olds have reached a record high, increasing by 0.4% to 37.4% from the last year!
Universities To Guide the UK Towards Becoming a World Leader in Technology
Worth mentioning is the UK’s education sector emerging as a top destination for the next digital age. Recent news highlights how the UK is directing funds and resources towards their goal to succeed as a knowledge economy — world-leading university research is crucial to achieve their aim. This decision was made under the notion that keys to the future of tech such as AI and deep learning, automation and predictive analytics have all started life in a lab or classroom and not in a traditional software development environment.
Where this ambition manifests itself is where economic growth is expected to prosper best. The city of Liverpool, where the Knowledge Quarter is being established, is a prime example of this.
Liverpool Expands to Welcome Education Sector
Liverpool’s £2bn expenditure to establish a 450-acre Knowledge Quarter as one of the world’s leading innovation districts in science, innovation, education, technology and the creative and performing arts, will further reinforce its status as one of the best student cities in the world!
Such conditions inevitably casts attention on the undersupply of Purpose Built Student Accommodation (PBSA) in Liverpool.
Found below are figures that illustrate the dire shortage of PBSA in Liverpool as of late 2017:
- Student Population: 67,000
- Amount of Housing Available Through University: 4,500
- Amount of Total Student Housing Available: 17,857
- Potential Yields: 8% per annum
With this shortage in mind, it would only be beneficial for the savvy investor to take a look at how to get involved in the student property market there.
Natex, one of Liverpool’s latest and most iconic PBSA developments to date, offers investors 9% returns, assured for five years. The 566-unit student accommodation scheme is approximately a 5-minute walk from two of the UK’s top universities: University of Liverpool and Liverpool John Moores University — it boasts all the facilities a student would ever need.
With Liverpool’s Knowledge Quarter and education centres in mind, and the investment potential of purpose-built student accommodation, it would be a good idea to dip your toes into the pool of Liverpool’s looming success as soon as possible!